The Impact of BRICS Expansion on Global Economic Approaches and International Trade

The Impact of BRICS Expansion on Global Economic Approaches and International Trade
Article type: Research
Author: Mehdi Fakhri
Source: Foreign Policy (Siyasat-e Khareji)
Year: 38th year, Issue 2 (No. 150)
Publication date: Summer 1403 (2024)

Article summary
This article examines the role and impact of BRICS on the global economy and international trade. With vast resources, substantial productive power, and robust development programs, BRICS has captured a significant share of the world economy and international markets. The recent expansion of BRICS membership and the diversity of new members have increased the potential for intra-group trade and influence over global trade flows.
The study shows that, unlike Western economies, BRICS follows a state-led development model in which governments act as facilitators rather than obstacles to development. The BRICS Development Bank and other financial institutions constitute serious competitors to traditional organizations such as the World Bank, playing a key role in financing members’ development projects.
Nevertheless, the article notes that BRICS has not yet become an unrivaled global power and, compared with the Euro–Atlantic bloc (the United States and the European Union), still requires greater unity and coordination among members to play an effective role in global trade, international security, and developmental issues such as climate change.
Overall, the article concludes that BRICS, as an emerging global economic and trade pole, has challenged the Western development model and created new opportunities for South–South cooperation, but achieving full impact will require stronger cohesion and coordinated leadership.